RBC Ups ABN Amro Price Target Amid Sustained Strategy Execution

06:35 AM EDT, 08/13/2026 (MT Newswires) -- RBC Capital Markets raised its price target for ABN Amro Bank (ABN.AS) to 45 euros from 40 euros, saying the Dutch lender's sustained strategy execution supports operating leverage and an "attractive" shareholder yield. "Consistent delivery leading to increased predictability provides more confidence on the future path - we lower our discount rate to 10% (by 25 [basis points]). We forecast a 2028e [return on tangible equity] of 14.1%, which goes to 15.6% adjusting for capital. Trading on 1.3x '28e, the return potential remains discounted, plus there is room for the shares to attract a further re-rating by 0.2x BV if earnings volatility comes down. Our PT moves up as a result of higher revenues at almost unchanged costs and a reduction in our discount rate to 10.0%," according to a Wednesday note. Looking ahead, ABN Amro raised its full-year 2026 commercial net interest income guidance to 6.8 billion euros, amid higher replication portfolio income, volume growth and the clearing unit's robust performance. The higher outlook reflects strong first-half results, which saw attributable profit climbing to 1.47 billion euros from 1.23 billion euros. "Higher capital generation and [risk-weighted asset optimization] lifted the [common equity tier 1] ratio to 15.9%. RWA changes [pre-growth] until [year-end 2026] should add close to 40bp to the CET 1 ratio. ABN reiterated it will update with FY results on capital distributions. We have modelled that ABN pays out 100% of profits at YE 2026 but to go above 100% from FY 2027 onwards, corresponding to a total yield of 7% for 2026e moving to 12% in 2028e. With an estimated CET 1 ratio of 15.2% YE 2028e, there is room for additional distributions or investments," the note said. RBC has an outperform rating on the stock.